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Weekly Roundups

Contested US Elections Will Impact Au, Ag Prices

By Alejandro Ehrenberg | Thu, 11/05/2020 - 16:37

The Week in Mining highlights events in Mexico’s industry, where Torex Gold reported strong profits for 3Q20 and Grupo México plans to increase its capital investment in the coming years. Also, the US elections have yet to fully impact the metals market. Lastly, as the Mexican Senate prepares to discuss whether to nationalize lithium, we offer an analysis piece evaluating the proposal’s viability.

This and more in your weekly mining roundup!

 

Mexico

Torex Gold Resources reported rising profits partly thanks to a strong gold price. During 3Q20, Torex poured 131,790 oz of gold at a total cost of US$877/oz. It sold more than 133,000 oz of gold at US$1,884/oz.

Grupo Mexico plans to increase its capital spending from about US$1.3 billion this year to US$2.8 billion in 2023, reported Minería en Linea. The resources would be used for maintenance and new projects in all its divisions, which also include transportation, energy and infrastructure.

Autlan, which produces ferroalloys, manganese, precious metals and renewable energy, announced that it won the Ethics and Values in Industry Award granted by the Confederation of Industrial Chambers (CONCAMIN).

 

Industry Trends

The mining sector is bustling with M&A activities in 2020. The COVID-19 pandemic has increased instability in the metals market prompting wealthy companies to acquire other enterprises with liquidity problems.

While lawmakers debate banning private capital from exploiting the country’s lithium, Mexico may be losing a massive opportunity.

 

Metals

Gold stalled after election night but its investment appeal remains. “A closer than expected US election has taken some wind out of gold's sails. Analysts warn not to count the precious metal out just yet as safe-haven demand can still drive prices higher,” says a Kitco article.

The US elections may also affect silver, pushing it out of the range where it has traded since the COVID-19 outbreak. 

The International Copper Study Group published its copper market forecast for 2020-2021, reporting that copper production will see a 1.5 percent decline in 2020 with an estimated 4.5 percent recovery in 2021.

Three batches of copper plates from Finland are going to be used to detect dark matter interactions. The material is currently in the US and will be transported to Canada, where the investigations will be carried out.

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Alejandro Ehrenberg Alejandro Ehrenberg Journalist and Industry Analyst